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Burma’s parliament approved a presidential motion today abolishing the use of Foreign Exchange Certificates (FEC).
The FEC notes were introduced into Burma in 1993 and were used as an alternative to the US dollar as foreign sanctions from western nations largely cut off the influx of several major foreign currencies into the country.
Burma’s Finance and Revenue Minister Win Shein told the parliament there are more than 30 million FEC units circulating in the market, which are worth approximately US$30 million.
According to Lower House Representative Ye Htun, the parliament also agreed to impose measures that will allow individuals to refund their remaining FEC notes.
Following Burma’s transition from military to quasi-civilian rule, the government continues to unveil new fiscal legislation as the country attempts to lure foreign investment.
Last April, the country floated its currency in order to overhaul Burma’s complex exchange rate system, which effectively smoothed the way for greater investment in the ramshackle economy.